Nearly Half of Gen Z Suffering From 'Financial Avoidance'

Younger Americans report high anxiety over personal finances as debt levels reach new highs.

Published on Feb. 11, 2026

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According to a new report, nearly half of Gen Z adults suffer from 'financial avoidance', avoiding checking their bank account balances due to stress over their finances. Additionally, nearly three-quarters of Gen Z and Millennials experience 'high or moderate anxiety about their checking and savings balances'.

Why it matters

Several reports have charted the broad decline in Americans' financial optimism in recent years, with the Conference Board's latest consumer confidence survey showing a steep drop to a 12-year low. This reflects ongoing challenges and high levels of financial concern as Americans face rising prices, labor market uncertainty, and record-high debt levels.

The details

The U.S. Bank-Morning Consult report was based on a survey of 3,000 U.S. adults, one-in-four of whom said they would need at least $10,000 to avoid feeling financial stress. This echoes findings from the National Endowment for Financial Education (NEFE), which found that 88 percent of American adults felt some form of financial stress heading into 2026, up from 79 percent in 2020. Among the anticipated stressors for this year, 'paying down debt' came in first at 40 percent, also proving the most popular financial New Year's resolution.

  • The U.S. Bank-Morning Consult report was released in February 2026.
  • The NEFE survey was conducted in December 2025.
  • The New York Federal Reserve's latest Household Debt and Credit report was released on Wednesday, revealing record-high debt levels in the fourth quarter of 2025.

The players

U.S. Bank

A financial services firm that co-authored the report on financial avoidance among younger Americans.

Morning Consult

A business research firm that co-authored the report on financial avoidance among younger Americans.

National Endowment for Financial Education (NEFE)

An organization that conducted a separate survey finding high levels of financial stress among American adults heading into 2026.

Billy Hensley

CEO of the National Endowment for Financial Education (NEFE).

Rodney Williams

Co-founder of the community finance platform SoLo Funds, which has seen an increase in borrower activity related to unemployment and layoffs.

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What they’re saying

“Many under 30 are eager to embark on major financial milestones like going to college, entering the workforce, buying a home or starting a family, but feeling financially unprepared. Survey data backs this up: less than half of adults feel ready for these milestones, and nearly half believe they'll always have debt.”

— U.S. Bank (U.S. Bank report)

“As we enter 2026, Americans are facing ongoing challenges and reporting some of the highest levels of financial concern we've seen in quite some time.”

— Billy Hensley, CEO, National Endowment for Financial Education (NEFE) (NEFE survey)

“The reality for many Americans is that finding meaningful work and building financial resilience feels tougher than ever.”

— Rodney Williams, Co-founder, SoLo Funds (Newsweek)

What’s next

The New York Fed's January Survey of Consumer Expectations, released Monday, showed that fewer Americans now expect their household's financial situation to improve over the next 12 months, despite some modest gains in inflation and employment expectations.

The takeaway

This report highlights the growing financial anxiety and avoidance among younger Americans, who are struggling to achieve major life milestones like buying a home or starting a family amid record-high debt levels and economic uncertainty. It underscores the need for improved financial education and support to help this generation build financial resilience.